Employment Practice Liability Insurance

Employment Practice Liability Insurance (EPLI) is an insurance policy that covers employers in case of lawsuits filed by employees for discrimination, harassment, wrongful termination, and other work-related issues. EPLI helps protect employers against the cost of defending against these kinds of claims and paying out settlements or judgments.

What does EPLI cover?

EPLI covers claims made by employees against their employer for a range of employment-related issues. These issues can include:

EPLI may also cover claims made by third parties, such as customers or vendors, if the claims are related to the actions of an employee.

Why is EPLI important?

EPLI is important because employment-related lawsuits can be very expensive for employers. Defending against these claims can cost hundreds of thousands of dollars in legal fees alone, not to mention the cost of settlements or judgments if the employer loses the case. EPLI can help protect employers from these costs and give them peace of mind in case an employee decides to file a lawsuit.

How much does EPLI cost?

The cost of EPLI varies depending on a number of factors, including the size of the business, the industry, the location, and the coverage limits. Generally, the larger the business and the higher the coverage limits, the more expensive the policy will be. However, the cost of EPLI is typically much lower than the cost of defending against an employment-related lawsuit, which is why many employers choose to purchase this type of insurance.

How do I purchase EPLI?

EPLI can be purchased as a standalone policy or as part of a package of insurance policies. Many insurance companies offer EPLI policies, so it is important to shop around to find the best coverage and price. Employers should also work with an insurance broker or agent who specializes in EPLI to ensure that they are getting the right coverage for their business.

What should I look for in an EPLI policy?

When shopping for EPLI, employers should look for a policy that provides comprehensive coverage for a wide range of employment-related claims. They should also look for a policy with high coverage limits that will protect them in case of a large settlement or judgment. Employers should also pay attention to the policy exclusions and make sure that they understand what is covered and what is not.

Conclusion

EPLI is an important type of insurance for employers to consider. It can help protect them from the cost of defending against employment-related lawsuits and give them peace of mind in case an employee decides to file a claim. Employers should work with an insurance broker or agent who specializes in EPLI to find the best coverage and price for their business.